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China Chemical Reporter said the coal liquefaction technology, developed by Gansu Coal Conversion Research Center, had recently passed appraisal in Gansu.
The technology uses mixed coal to convert coal into oil at a relatively low cost. Coal from Dayou and coal from Tianzhu, both in Gansu Province, are mixed together to have direct liquefaction.
In the past the mining and burning of coal from Dayou, which has high sulfur content and is a high polluter, was banned. However, this type of coal can serve as a raw material for conversion into oil.
China Chemical Reporter said using the technology, the total cost of gasoline or diesel would be around RMB1 500 per ton. The average wholesale price of gasoline or diesel is around RMB3 000 per ton.
